Who is responsible for ensuring that the proposed transferee of a Face Foundrie franchise meets the franchisor's requirements?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
roval of a Transfer that meets all of the reasonable restrictions, requirements and conditions Franchisor may impose on the Transfer, the transferor(s) and/or the transferee(s), including the following:
(a) Franchisee and its Owners and Affiliates must be in compliance with the provisions of this Agreement and all other agreements with Franchisor or any of its Affiliates and have paid all outstanding amounts owed thereto, as well as to the approved suppliers to the System;
(b) The transferee shall demonstrate to Franchisor's satisfaction that the terms of the proposed transfer do not place an unreasonable financial or operational burden on the transferee, and that the transferee (or, if the transferee is other than an individual, such owners of beneficial interests in the transferee as Franchisor may request) meets Franchisor's then-current application qualifications (which may include educational, managerial, socially responsible, and business standards, good moral character, business reputation, and credit rating); has the aptitude and ability to operate the Facial Bar and absence of conflicting interests; and has adequate financial resources and capital to operate the Facial Bar;
(c) The proposed transferee must enter into an agreement in writing to assume and perform all of Franchisee's duties and obligations hereunder and/or, as required by Franchisor, execute the form of franchise agreement then being offered to new System franchisees, and such other ancillary agreements required by Franchisor for the Facial Bar franchised hereunder, which agreements shall supersede this Agreement and its ancillary documents in all respects, and the terms of which may differ from the terms of this Agreement including, without limitation, higher and/or additional fees;
(d) The transferee (and, if the transferee is not an individual, the Operating Partner), shall, at the transferee's expense, successfully attend and successfully complete any training programs then in effect for operators upon such terms and conditions as Franchisor may reasonably require;
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, the responsibility for ensuring a proposed transferee meets the franchisor's requirements falls primarily on the current franchisee and the proposed transferee. The transferee must demonstrate to Face Foundrie's satisfaction that the terms of the transfer won't create unreasonable financial or operational burdens. The transferee (or certain owners, if the transferee isn't an individual) needs to meet Face Foundrie's application qualifications, which include standards for education, management, social responsibility, business acumen, moral character, reputation, and credit rating. They also need to show they have the aptitude, ability, and financial resources to run the Facial Bar, and that they don't have any conflicting interests.
Furthermore, the proposed transferee is required to enter into a written agreement to take on all of the franchisee's duties and obligations. Face Foundrie may also require the transferee to execute the current franchise agreement offered to new franchisees, which could supersede the original agreement and have different terms, potentially including higher or additional fees. The transferee (or the Operating Partner, if the transferee isn't an individual) must also attend and successfully complete any required training programs at their own expense.
In addition to the transferee's responsibilities, the franchisee plays a role by ensuring the transferee meets these qualifications. The franchisee and its owners/affiliates must also execute a general release of claims against Face Foundrie. This comprehensive set of requirements ensures that any new franchisee is well-qualified and prepared to maintain the standards and reputation of the Face Foundrie brand. Both parties, the seller and the buyer, have distinct obligations to fulfill to ensure a smooth and compliant transfer process.